Tale of two cities
----Comparison of Capital Markets
System In London and Shanghai
Joyce Wang
05-06-2009
outline
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International capital market system
London’s capital market system
Shanghai’s capital market sysetm
Comparison of two cities’ capital market
Develeping Shanghai’s multi-level capital
market
International capital market system
International capital market
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Capital market refers to the securities
financing and business for more than
one year loan term capital stock
markets, including stock market, bond
market, fund market and long-term
credit market , etc.
International capital market
system
In today’s mature capital market
main system pattern---multi-level:
Mainboard
Second board(do pioneering work board)
Third board
Over-the-counter bulletin board
London’s capital market system
London’s Capital Market
system
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Stock trading volume No. 3 in the world
IPO financing volume No. 2 in the world
Market cap. No. 5 in the world
30% of global foreign exchange trading
70% of global bond trading
20% of global inter-bank trading
London’s Exchanges
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mainboard----London Stock Exchange(LSE)
second board----Alternative investment
market(AIM)
third board----Techmark
over-the-counter bulletin board---Off exchange(OFEX)
Other exchanges----London Future And Options
Exchange, London Carbon Trading Exchange,
London Metal Exchange , Baltic Exchange ,etc
Features of London’s Capital
Market
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multi-level,Diversified,complete
structure
Satisfy companies financing needs at
different levels and different times
Optimal allocation of various
resources
Regulation complicated
Shanghai’s Capital Market system
Shanghai’s Capital Market
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Stock trading volume No. 7 in the world
IPO financing volume No. 3 in the world
Market cap. No. 6 in the world
Copper trading of Shanghai Futures Exchange
No. 2 in the world
Shanghai’s Exchanges
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mainboard----Shanghai Stock Exchange
Other exchanges---Shanghai United Assets And Equity Exchange
Shanghai Futures Exchange
Shanghai Environment And Energy Exchange
Shanghai Gold Exchange
Shanghai Shipping Exchange
Shanghai Oil Exchange
etc.
Features of Shanghai’s Capital
Market
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Single level, leaning towards large
company
Government dominating, strict
regulation
Lots of medium and small businesses,
especially science and technology,
can’t get equity financing service
through the single level capital
market.
Comparison of two cities’ capital
market
Comparison of two cities’
capital market
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mature vs. primitive
Multi-level meet all kinds of demands vs.
single level meet limited demands
Highly innovative vs. relatively simple
Too much virtue elements vs. too much base
on real economy
Developing Shanghai’s
multi-level capital market
Developing Shanghai’s multi-level
capital market
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A good news---Do poineering work
board (known as “second board”) is
formally open in recent days , it is
a symbol of multi-level capital
market construction.
Developing Assets Market ---a good
supplement, served as third board.It
is completing the multi-level and
diversifying system.
Developing Shanghai’s multi-level
capital market
Shanghai assets market is a primary
equity market
securitization
Semi-standard
Non-standard
The end
It was the best of times, it was the
worst of times, it was the age of wisdom,
it was the age of foolishness, it was the
season of Light, it was the season of
Darkness, it was the spring of hope, it
was the winter of despair, we had
everything before us, we had nothing
before us.
Thank you